It’s Your Money > Taxes

Who's FATCA anyway? Should anyone be afraid of FATCA?

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bigrod:
Lee,

Child support/alimony deductions can go up to 65% of your social security.  Deductions for back taxes, student loans, and other federal agency garnishments are capped at 15%.

Chuck








Art, just a re(tired) Fil-Am:
Chuck,
I have none of those you listed! Sorry for those who do! Ouch! :)
Child support
Alimony
Back taxes
Student loan
Garnishments

Lee2:

--- Quote from: bigrod on September 01, 2014, 10:40:38 PM ---Lee,

Child support/alimony deductions can go up to 65% of your social security.  Deductions for back taxes, student loans, and other federal agency garnishments are capped at 15%.

Chuck

--- End quote ---


Chuck while I agree with you that those numbers are probably real, failure to declare under that law can mean stiff penalties and the govt somehow always manages to get their money by locking peoples accounts that have accounts in the US, or by putting liens on property they have in the US, or possibly by taking some of their income, to what degree we will never know until it happens, as I do not know anyone where their SS was taken for that but there can always be a first time if it has never happened yet.


--- Quote ---A penalty for failing to file the Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, commonly known as an “FBAR”). United States citizens, residents and certain other persons must annually report their direct or indirect financial interest in, or signature authority (or other authority that is comparable to signature authority) over, a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $10,000 at any time during the year. Generally, the civil penalty for willfully failing to file an FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign account per violation. See 31 U.S.C. § 5321(a)(5). Non-willful violations that the IRS determines were not due to reasonable cause are subject to a $10,000 penalty per violation.

Beginning with the 2011 tax year, a penalty for failing to file form 8938 reporting the taxpayer’s interest in certain foreign financial assets, including financial accounts, certain foreign securities and interests in foreign entities, as required by I.R.C. §6038D. The penalty for failing to file each one of these information returns is $10,000, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return.
There is more at the link. http://tinyurl.com/9oolgde

--- End quote ---

trev.:
After reading these posts my question is... Say for instance you buy a condo or build a house with legal funds from the U.S. say with money from a retirement fund, IRA or what ever. You paid taxes on the withdrawals. So now you sell the condo or house and you have a large amount in the bank. Remember every thing is done legit. I am just curious on how the government would look at that. The Ph. government and the U.S. (IRS).
I imagine one would need to explain where all the money comes from?

Lee2:

--- Quote from: trev. on September 02, 2014, 01:30:24 AM ---After reading these posts my question is... Say for instance you buy a condo or build a house with legal funds from the U.S. say with money from a retirement fund, IRA or what ever. You paid taxes on the withdrawals. So now you sell the condo or house and you have a large amount in the bank. Remember every thing is done legit. I am just curious on how the government would look at that. The Ph. government and the U.S. (IRS).
I imagine one would need to explain where all the money comes from?

--- End quote ---

In the Philippines, when you sell a home or condo, they charge you a straight tax on the sale price, it does not matter if you made a profit or lost your butt.
http://real-estate-guide.philsite.net/taxes.htm

--- Quote ---The SELLER pays for the:
Capital Gains Tax equivalent to 6% of the selling price on the Deed of Sale or the zonal value, whichever is higher. (Withholding Tax if the seller is a corporation)
Unpaid real estate taxes due (if any).
Agent / Broker's commission.

--- End quote ---

As for the US, if you made a profit then you would supposedly have to declare it but as far as the money, as long as you had proof where it came from and proof of the profit or loss, then you would be covered having it but for exact details on how it would be declared, then possibly a member who sold one could answer that for us?

As for FATCA you would have to declare the money any year that you had $10,000 or over in any account or accounts outside the US and in any currency totaling a value equal to US $10,000 or more.

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